CBSL warns merchants against illegally charging extra fees on card payments

Thursday, 24 July 2025 00:08 - - {{hitsCtrl.values.hits}}

Notes 1.6 m digital payments daily, with 800,000 via cards and 600,000 online

The Central Bank of Sri Lanka (CBSL) yesterday issued a firm reminder to merchants that charging customers an additional fee, such as a 2.5%-3% surcharge for using debit or credit cards, is strictly prohibited.

“If a merchant demands more than the listed price, customers should get a receipt and report it to their card-issuing bank,” a CBSL official said, underscoring that any deviation from the listed retail price during card transactions is illegal. The clarification follows a query posted at the post-Monetary Policy Review meeting media briefing on a surge in consumer complaints alleging that certain retail outlets and service providers are adding hidden surcharges to electronic payments, effectively penalising customers for opting for cashless transactions.

The official noted that Sri Lanka currently observes around 1.6 million digital payments daily and, of that, about 800,000 payments are made through credit and debit cards, while 600,000 transactions are via online transactions. “At present, there is good progress in digital payments,” he added.

The CBSL reminder aims to protect consumer rights and promote trust in digital payments at a time when the Government and financial institutions are actively encouraging electronic transactions to improve transparency, convenience, and financial inclusion.

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